ESCROW INSPECTIONS AND APPRAISAL

Your escrow began when you accepted a buyer's purchase offer and earnest money deposit. What follows is the inspection and appraisal of your property and the loan origination process for the buyer.

The Closing Attorney. The buyer’s lender selects a closing attorney, whose job it is to examine and insure title to real estate. After researching the complete recorded history of your property, they will certify that: (1) your title is free and clear of encumbrances (eg. mortgages, leases, or restrictions) by the date of closing, and (2) all new encumbrances are duly included in the title. They will prepare a preliminary title report at the end of the process. If there are any outstanding issues, your attorney will go over it with you in detail.

Contingencies. A contingency is a condition that must be met before a contract becomes legally binding. For instance, a home buyer will usually include a contingency stating that their contract is binding only when there is a satisfactory home inspection report from a qualified inspector.

Before completing his or her purchase of your property, the home buyer reviews every aspect of the property, as provided for by the purchase and sale agreement. These include:

• obtaining financing and insurance
• reviewing all pertinent documents, such as preliminary title reports, disclosure documents
• inspecting the property. The buyer has the right to determine the condition of your property by subjecting it to a wide range of inspections, such as roof, termite/pest, chimney/fireplace, property boundary survey, well, septic, pool/spa, arborist or mold, and
• For condominiums: a review of the Master Deed, Declaration of Trust and Financials.

Depending on the outcome of these inspections and reviews, one of three things may happen:

1. Each milestone is successfully closed and the contingencies will be removed, bringing you one step closer to the Closing, or
2. The Buyer, after reviewing the property and the papers, requests a renegotiation of the terms of contract (usually the price); or
3. The Buyer requests a refund of their deposit and your Boston Choice Properties agent will “re-activate” your listing.

How do you respond objectively and fairly to the buyer when a renegotiation is demanded? This is when a professional listing agent can make a real difference in the outcome of the transaction. Having dealt with various property sales in the past, we at Boston Choice Properties guarantee the expertise and total commitment of our agents to every client, no matter what their situation.

Loan Approval and Appraisal. We suggest that you accept buyers who have a lender's pre-approval letter, which is a better guarantee of loan approval than a pre-qualification. Expect an appraiser from the lender's company to visit the property and verify that the sales price is appropriate.

Ready To Go? Don't pack your bags just yet. Something unexpected might happen - a buyer loses his job, or the property does not appraise. There is a proper time to start preparations for moving, and given our previous experience with real estate transactions, we will help you determine when that time will be.